Japanese rubber futures climbed as the U.S. and China reached a surprise tariff-cut deal, easing global market tensions and boosting investor confidence.
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Tokyo (CSVNO) – Japan’s rubber futures rose on Monday, supported by renewed market optimism following a U.S.–China tariff truce that eased global trade uncertainty and lifted investor sentiment.
The October delivery contract on the Osaka Exchange (OSE) closed 3 yen higher, or 1.0%, at 312.5 yen (USD 2.11) per kilogram. The contract had already gained 1.4% in the previous week.
Meanwhile, the September contract on the Shanghai Futures Exchange (SHFE) rose 320 yuan, or 2.2%, to 15,025 yuan (USD 2,083) per ton.
U.S.–China Trade Truce Lifts Market Confidence
The United States and China agreed on Monday to temporarily reduce reciprocal tariffs in a deal that exceeded market expectations, signaling a step toward ending the long-running trade war between the world’s two largest economies.
Under the agreement, the U.S. will cut additional tariffs imposed in April 2025 on Chinese imports from 145% to 30%, while China will reduce its tariffs on U.S. imports from 125% to 10%. Both measures will remain in effect for 90 days.
The truce followed two days of high-stakes trade talks in Switzerland, concluding on a positive note. U.S. officials described the outcome as a “deal to reduce the U.S. trade deficit,” while Chinese representatives said both sides had reached “important consensus.”
Vice Premier He Lifeng confirmed that a joint statement would be issued in Geneva, with Vice Minister of Commerce Li Chenggang adding that the announcement would bring “good news for the world.”
Market Fundamentals
Data from the Shanghai Futures Exchange showed rubber inventories at monitored warehouses slipped 0.1%compared with the previous report on April 30.
Preliminary trade data also indicated that China’s natural and synthetic rubber imports fell by about 10% in April, to 685,000 tons, down from 760,000 tons in March.
The Japanese yen traded at 147.96 per U.S. dollar, compared with 145.42 per dollar at the end of Friday’s Asian session.
Analysts noted that the easing of trade tensions and improved sentiment in China’s manufacturing sector could support short-term rubber demand, although long-term sustainability will depend on macroeconomic stability and energy costs.